GST Update

Desk of CA. Praveen Sharma – 899 Series (CAPS)

Delhi High Court in the case of J.K. Enterprises through its Proprietor Jai Kishan Bansal

The Delhi High Court dealt with a writ petition filed under Article 226 challenging a Show Cause Notice dated 07.08.2024 and an Order dated 30.01.2025 passed by the Superintendent, CGST Delhi North.

The impugned order confirmed a demand of about ?18.77 lakh each under CGST and SGST, including tax and penalty, aggregating to approximately ?37.54 lakh.

The department alleged that a large-scale investigation involving around 575 noticees had revealed fake ITC of about ?13.16 crore, routed through 16 fake firms. The petitioner was shown as one of the beneficiaries/recipients in the SCN.

It was noted that the petitioner neither filed a reply to the SCN nor appeared for personal hearing, which resulted in the confirmation of demand.

Instead of filing a statutory appeal, the petitioner approached the High Court contending that the SCN covered multiple years, year-wise breakup was not provided, personal hearing notices were not served, and that the Superintendent lacked jurisdiction.

On verification of records, the Court found that personal hearing notices were duly sent to the registered email ID and portal records supported proper service. Hence, the plea of non-service was rejected.

The Court further held that a consolidated SCN covering multiple years is legally valid and that year-wise details were already available in the DRC-01 annexure. Accordingly, the objections raised by the petitioner were found to be without merit.

Considering that the allegations related to fake ITC and an effective alternative remedy of appeal under Section 107 of the CGST Act was available, the Court dismissed the writ petition with costs of ?1,00,000.

However, the Court granted liberty to the petitioner to file an appeal on or before 15.01.2026 with the requisite pre-deposit and directed that such appeal shall not be rejected on the ground of limitation.

LINK: CA. Praveen Sharma on Linkedin

Regards
CAPS